Business recovery and property services consultancy, Begbies Traynor Group plc said that pre-tax profit fell in the six months to 31 October 2015, but revenue was up from £20.8m to £25.5m.
Begbies Traynor said pre-tax profit fell from £1.5m the previous to £600,000 due to amortisation and acquistion related costs. Adjusted profit before tax was up from £2m to £2.5m.
...we remain cautious about activity levels in the insolvency division...Ric Traynor
The group acquired property consultancy Eddisons last December - which it says has performed in line with our expectation.
Ric Traynor, executive chairman of Begbies Traynor Group, said: “I am pleased to report a solid financial performance in the period with results in line with our expectations. The group has delivered growth in revenue and adjusted profit before tax, together with a strong cash performance, in addition to strengthening the business through acquisitions in both of our divisions, one subsequent to the period end.
Begbies said that the insolvency market was challenging with 10 per cent year-on-year reduction in the number of UK corporate insolvencies in the six months to 30 September 2015.
Mr Traynor said: “With no indications of a change to the benign financing environment in the UK which would cause an increase in insolvency levels, we remain cautious about activity levels in the insolvency division in the near term and will continue to focus on managing costs accordingly.”
He added: “The Eddisons business, which was acquired in December 2014, has continued to perform in line with expectations and the remainder of the financial year will benefit from the acquisition of the Taylors business.
“Overall, our expectations for the year as a whole remain unchanged. We will continue to look for opportunities to develop and enhance the group, both organically and through selective acquisitions. We will provide an update on third quarter trading in early March 2016.”